To our shareholders and investors

1. Operating and financial review

During the first quarter of the fiscal year (from January 1, 2026 to March 31, 2026), the global economy remained solid overall, although uncertainty persisted due to factors such as developments in U.S. trade policy, the sluggish Chinese economy, and rising geopolitical risks, including heightened tensions in the Middle East.

Looking at the business environment, demand for labor-saving and automation investment has continued to remain solid in the manufacturing and distribution industry, mainly in Japan and the United States, against the backdrop of labor shortages and rising labor costs.

In the semiconductor industry, investment in advanced semiconductors has continued at a high level, supported by expanding demand for AI applications. In China, investment continues in line with efforts to strengthen and promote domestic production.

In the automotive industry, delays in customers’ investment decision-making caused by U.S. trade policy, which were observed in the previous fiscal year, have been gradually easing. Meanwhile, demand is continuing for investment in automation at airports to meet the increase in the number of air passengers, particularly in the United States and certain other countries.

In this economic and business environment, the first quarter of the fiscal year saw a significant increase in orders from the semiconductor sector for cleanroom systems, while demand for airport systems was also robust.

Sales increased, underpinned by an extensive order backlog at the end of the previous fiscal year.

Specifically, the Group received orders of 221,388 million yen, up 54.7% from the same period of the previous fiscal year, and recorded sales of 172,710 million yen, up 7.8%.

In terms of profits, profitability improved as a result of higher sales, together with progress in production efficiency and cost reduction efforts, leading to an increase in profit.

Consequently, the Group posted operating income of 26,291 million yen, up 13.2% from the same period of the previous fiscal year, and ordinary income of 26,514 million yen, up 12.0%. Net income attributable to shareholders of the parent company was 19,498 million yen, up 15.6%.

Orders reached the highest level ever recorded on a quarterly basis, while sales, operating income, ordinary income, and net income attributable to shareholders of the parent company reached new record highs for the first quarter of the fiscal year.

2. Outlook for the fiscal year ending December 31, 2026

The above forecast values are our projections based on information available at the time of this release and contain various uncertainties. Actual results may differ materially from forecast values due to factors such as changes in the business performance of the Company.

3. Basic policy for dividends

The Company regards the return of profits to shareholders as one of its most important management tasks and adopts a performance-based policy regarding cash dividends based on consolidated net income. After dividends, the Company appropriates the remaining surplus to internal reserves to be used as investment funds for future growth.

In the four-year business plan for 2027 that started in April 2024, the Company aims to achieve a consolidated dividend payout ratio of 35% or more for each fiscal year.

With respect to dividends for the fiscal year ending December 31, 2026, the Company plans to pay an annual dividend of 82 yen (an interim dividend of 36 yen per share and a year-end dividend of 46 yen), with a consolidated dividend payout ratio of 37.7%, based on the earnings forecast for the fiscal year ending December 31, 2026 and the shareholder return policy.

We respectfully ask our shareholders and investors for their continued support.

May 2026
Tomoaki Terai, President and CEO